The Real Estate Market Report for June 2018 is another whopper, with Median Sales Price cresting at another post-recession high of $355,000. That was up slightly from last month, and now marks four (4) consecutive months in which median sales price recorded a new high.
$355k represents about a 3% increase year-over-year, and a more than 6% increase for 2018 alone. It’s hard to over-emphasize what an incredible number that is. Over the last two years, median sales price has now appreciated over 20%.
What’s going on? It’s simple: supply and demand.
A deeper look at single-family homes in Palm Beach County
Palm Beach County is one of the wealthiest and fastest growing markets in the county, heavily influenced by our tourism, and relatively young, able workforce. The allure of the sun, sand, and prospect for good wages and a healthy job market are hard to deny.
And these people are buying homes.
Median Time to Contract to purchase a single-family home in Palm Beach County fell more than 6% in June 2018 from the prior year to 43 days. That is almost a 40% drop from just four years ago, when the median time to contract was a little closer to 70.
In the critical $200,000 – $400,000 listing price range for homes in the county, which account for about 30% of the available market, the number of active inventory homes just cannot keep pace with demand. Homes over $400k make up about 60% of all homes available for sale, and those aren’t moving anywhere near as quickly.
The percentage of newly listed homes for sale in the highest-demand price range of $200k – $400k are not keep pace with demand. New Listings for these homes are down 6% from June 2017. New listings for homes above $400k are up.
Mortgage rates are affecting buyers
Mortgage rates have both a psychological and financially tangible effect on buyers, especially younger or first-time homebuyers. With mortgage rates continuing their ascent (30-year fixed sits at about 4.75% at the time of publication), buyers panic and flood the market looking to get into a home while they still can.
The good news is that there are many, many options for financing a home besides the traditional 30-year fixed. There are excellent benefits for veterans and their families, and qualifying first-time homebuyers. That’s why it is imperative that buyers shop their options with a good mortgage broker.
Concerned about rates? Check out this related post we did a few months back on how to combat rising mortgage interest rates.
Hang in there, buyers, and trust our exceptional Realtors at Copeland & Co. Real Estate to guide you!
June 2018 Single-Family Real Estate Market Stats
|SINGLE-FAMILY HOMES||JUNE 2018||JUNE 2017||PERCENT CHANGE|
|Median Sales Price||$355,000||$345,000||2.9%|
|New Pending Sales||1,624||1,727||-6.0%|